Advantages to Donating Listed Securities

Corporations and individuals that donate publicly traded securities to registered charities receive significant tax savings.  These tax savings are generally three-fold.   No Capital Gain   If a taxpayer donates publicly traded securities which have appreciated in value, the taxpayer (an individual or corporate taxpayer) realizes no capital gain on the donation.[1]   Charitable Tax Deduction   The taxpayer will …

Don’t Assume When Assuming Liabilities

The assumption of a vendor’s liability by a purchaser may constitute part of the sale price and, therefore, part of the vendor’s proceeds of disposition.  The tax consequences to the vendor and the purchaser will vary depending on whether a liability is embedded or separable from the property acquired.  The types and amounts of liabilities ought to be identified at …

How To Claim Losses With Bad Debts and Bankrupt Corporations?

Section 50 allows taxpayers to elect to claim a capital loss in two situations: when a debt owing to the taxpayer is established by the taxpayer to have become a bad debt (50(1)(a)) and when the taxpayer owns shares in a bankrupt/insolvent corporation (50(1)(b)).   Section 50(1)(a) – Bad Debt   In order to claim a capital loss on a …

Budget 2018 Update – Not a Complete Disaster

On February 27, 2018, the Federal government tabled its annual budget: “Equality and Growth for a Strong Middle Class” (the “Budget”).  In the July 18, 2017 private corporation tax proposals , the government proposed changes to the taxation of passive investment income earned by Canadian controlled private corporations (“CCPCs”).  The Budget includes a new regime for the taxation of CCPCs …